John Dean and Danny Lui started raising their first fund as Startup Capital Ventures (SCV), a modest venture capital firm in 2005. They made a soft obligation to invest 15-20% of their first $25MM fund in China. They made their first Chinese investment in 2005 in Zero2IPO, a Beijing-based market research business that tracked Mainland china private equity and venture capital markets. The investment has gone well so far, but the venture capital market is changing quickly.
Lui and Dean need to decide if so, they must develop a new strategy, and whether to continue investing in China. This case examines the challenges of regulation changes that are critical, given increased competition for deals, venture capital investment in China and a growing preference versus foreign VCs for local teams.
Startup Capital Ventures in China case study solution
PUBLICATION DATE: January 22, 2009 PRODUCT #: E325-HCB-ENG
This is just an excerpt. This case is aboutĀ GLOBAL BUSINESS